On May 14, 2007, at 1:25 PM, Brendan Murphy wrote:

> You are missing my point that the RB 3rd party market is not yet
> a commodity market meaning you have many indistinguishable
> suppliers and thus competition drives the price down, yet they are
> pricing themselves at a commodity price level when they don't have
> to. Who are they competing against?
>

It sounds like you are saying: the price should be high *now* because  
there is no competition.

And that later, we can expect lower prices because more plugin  
developers will show up and force market prices down.

Interesting theory.

> They should charge what the market would handle that maximizes
> their profit. Right now, they are under charging and in turn
> shooting themselves in the foot and thus training the RB community
> to expect cheap prices which discourages other vendors from
> entering the market. When you see other vendors coming into the
> same space, then you can think about competing as a commodity.

By all means, they should charge a price that maximizes their  
profit.  What makes you think they haven't?

If they weren't moving enough units, wouldn't they lower the price?   
And if they were moving too many (more than they could support),  
wouldn't they raise the price?

Ultimately, we don't get to put the price where we *wish* it should be.

-----------------
Russ Tyndall
Wake Forest, NC



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